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openaccountants/skills/lebanon-vat.md
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1---
2name: lebanon-vat
3description: Use this skill whenever asked to prepare, review, or classify transactions for a Lebanon VAT return. Trigger on phrases like "Lebanon VAT", "TVA Lebanon", "MOF Lebanon". Lebanon imposes VAT at 11% under Law 379/2001 (12% Cabinet-approved Feb 2026, pending Parliament). WARNING -- ongoing economic crisis affects enforcement and exchange rates. ALWAYS read this skill before handling any Lebanon VAT work.
4version: 2.0
5---
6 
7# Lebanon VAT Return Skill v2.0
8 
9## Section 1 -- Quick reference
10 
11| Field | Value |
12|---|---|
13| Country | Lebanon |
14| Standard rate | 11% (single rate; 12% Cabinet-approved Feb 2026, pending Parliament) |
15| Zero rate | 0% (exports, international transport) |
16| Exempt | Financial/banking, insurance, medical, education, residential rental, public transport, unprocessed agricultural, books |
17| Filing portal | https://www.finance.gov.lb |
18| Authority | Ministry of Finance (MOF) |
19| Currency | LBP (Lebanese Pound) |
20| Filing frequency | Quarterly |
21| Deadline | 20th of month following quarter end |
22| Registration threshold | LBP 100,000,000 (effectively negligible due to currency crisis) |
23| Primary legislation | Law No. 379 of 2001; Decree 7336/2002 |
24| CRITICAL WARNING | Economic crisis since 2019 -- exchange rates, enforcement, refunds all affected |
25| Contributor | Open Accounting Skills Registry |
26| Validated by | Pending |
27| Last research update | April 2026 |
28 
29---
30 
31## Section 2 -- Required inputs and refusal catalogue
32 
33**Minimum viable** -- bank statement. Acceptable from Bank Audi, Blom Bank, Byblos Bank, BankMed, Fransabank, or any Lebanese bank.
34 
35**Refusal catalogue:**
36 
37**R-LB-1 -- Exchange rate determination.** Trigger: foreign currency transactions without confirmed MOF rate guidance. Message: "Multiple exchange rates exist. MOF guidance on applicable rate must be confirmed by practitioner before VAT calculations."
38 
39**R-LB-2 -- Crisis-era enforcement.** Trigger: questions about current MOF operational status. Message: "Verify current MOF enforcement position with local practitioner."
40 
41---
42 
43## Section 3 -- Supplier pattern library
44 
45### 3.1 Lebanese banks (exempt -- exclude)
46 
47| Pattern | Treatment | Notes |
48|---|---|---|
49| BANK AUDI, AUDI | EXCLUDE | Exempt financial service |
50| BLOM BANK, BLOM | EXCLUDE | Same |
51| BYBLOS BANK | EXCLUDE | Same |
52| BANKMED, FRANSABANK | EXCLUDE | Same |
53| INTEREST, LOAN | EXCLUDE | Out of scope |
54 
55### 3.2 Government
56 
57| Pattern | Treatment | Notes |
58|---|---|---|
59| MOF, MINISTRY OF FINANCE | EXCLUDE | Tax payment |
60| CUSTOMS, DOUANE | Check for import VAT | VAT recoverable |
61| NSSF, CNSS | EXCLUDE | Social security |
62 
63### 3.3 Utilities
64 
65| Pattern | Treatment | Notes |
66|---|---|---|
67| EDL, ELECTRICITE DU LIBAN | Domestic 11% | Electricity |
68| OGERO, ALFA, TOUCH | Domestic 11% | Telecoms |
69 
70### 3.4 SaaS
71 
72| Pattern | Treatment | Notes |
73|---|---|---|
74| GOOGLE, MICROSOFT, AWS | Reverse charge 11% | Non-resident; exchange rate critical |
75| ZOOM, SLACK, NOTION | Reverse charge 11% | Same |
76 
77---
78 
79## Section 4 -- Worked examples
80 
81### Example 1 -- Standard sale
82 
83Company sells goods LBP 10,000,000 net. Output VAT = LBP 1,100,000 (11%). Total = LBP 11,100,000.
84 
85### Example 2 -- Foreign currency reverse charge
86 
87UK law firm invoices USD 10,000. Reverse charge at 11% on LBP equivalent. Exchange rate: flag for practitioner -- conversion rate is critical during crisis.
88 
89---
90 
91## Section 5 -- Classification rules
92 
93### 5.1 Standard rate 11%
94 
95Single rate. No reduced rates. If 12% enacted by Parliament, update accordingly.
96 
97### 5.2 Zero-rated
98 
99Exports, international transport, duty-free zone supplies (conditions).
100 
101### 5.3 Exempt
102 
103Financial/banking, insurance, medical, education, residential rental, public transport, unprocessed agricultural, books/newspapers, gold (investment grade).
104 
105---
106 
107## Section 6 -- VAT return form structure
108 
109| Section | Description |
110|---|---|
111| A. Output VAT | 11% on domestic taxable supplies |
112| B. Zero-rated | Exports |
113| C. Exempt | Exempt revenue |
114| D. Total supplies | A+B+C |
115| E. Input VAT domestic | 11% on local purchases |
116| F. Input VAT imports | Customs VAT |
117| G. Total input | E+F |
118| H. Net VAT | A minus G |
119| Credit brought forward | Prior period |
120 
121---
122 
123## Section 7 -- Reverse charge and imports
124 
125Services from non-resident: self-assess at 11%. Claim input if taxable. Net zero. Exchange rate: must confirm with practitioner.
126 
127Import of goods: VAT at 11% on CIF plus customs plus excise. Collected by Lebanese Customs.
128 
129---
130 
131## Section 8 -- Deductibility and blocked input
132 
133Blocked: entertainment/hospitality, personal-use items, passenger vehicles (unless transport/rental), purchases for exempt supplies, gifts (above thresholds), tobacco/alcohol (personal), club memberships.
134 
135Partial exemption: turnover-based apportionment. Annual adjustment required.
136 
137---
138 
139## Section 9 -- Filing, deadlines, and penalties
140 
141| Quarter | Deadline |
142|---|---|
143| Q1 (Jan-Mar) | 20 April |
144| Q2 (Apr-Jun) | 20 July |
145| Q3 (Jul-Sep) | 20 October |
146| Q4 (Oct-Dec) | 20 January |
147 
148| Violation | Penalty |
149|---|---|
150| Late filing | LBP 50,000/day (pre-crisis; may be negligible) |
151| Late payment | 1.5% per month |
152| Failure to register | Backdated assessment + penalties |
153 
154Note: penalty amounts may be effectively negligible due to devaluation.
155 
156---
157 
158## Section 10 -- Edge cases, test suite, and escalation
159 
160### Edge cases
161 
162**EC1 -- Foreign currency invoicing.** Flag for practitioner. Multiple rates exist.
163 
164**EC2 -- Refund delays.** Cash refunds from MOF may not be obtainable. Carry forward.
165 
166**EC3 -- Export proof.** Zero-rated only with customs declaration, bill of lading, proof of delivery.
167 
168**EC4 -- Banking services exempt.** Input VAT on purchases for exempt banking not recoverable.
169 
170**EC5 -- Restaurant (blocked for buyer).** Entertainment blocked for input recovery.
171 
172**EC6 -- Construction/real estate.** First sale may be taxable. Escalate.
173 
174### Test suite
175 
176**Test 1 -- Standard sale.** LBP 10M net. Expected: output LBP 1.1M (11%).
177 
178**Test 2 -- Export.** USD 5,000 to France. Expected: 0%. Input recoverable.
179 
180**Test 3 -- Reverse charge.** UK firm USD 10,000. Expected: 11% self-assessed. Exchange rate: flag.
181 
182**Test 4 -- Exempt.** Bank interest LBP 500M. Expected: no output. Input LBP 2.2M not recoverable.
183 
184**Test 5 -- Import.** Turkish goods CIF LBP 100M + duty LBP 5M. Expected: VAT base LBP 105M, VAT LBP 11.55M.
185 
186**Test 6 -- Blocked entertainment.** Dinner LBP 5M + VAT LBP 550K. Expected: input = 0.
187 
188### Escalation protocol
189 
190```
191REVIEWER FLAG / ESCALATION REQUIRED
192[Standard format -- include note about economic crisis verification]
193```
194 
195### Out of scope -- direct tax
196 
197- Corporate income tax: 17%
198- Personal income tax: progressive 2%-25%
199- Social security (NSSF): employer and employee contributions
200 
201### Prohibitions
202 
203- NEVER apply any rate other than 11% (until 12% enacted)
204- NEVER allow input recovery on exempt supplies
205- NEVER use exchange rate without practitioner confirmation
206- NEVER assume pre-crisis rules apply unchanged
207- NEVER assume MOF systems operational without confirming
208- NEVER compute numbers -- engine handles arithmetic
209 
210---
211 
212## Disclaimer
213 
214This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
215 
216The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com).
217 

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Use this skill whenever asked to prepare, review, or classify transactions for a Lebanon VAT return. Trigger on phrases like "Lebanon VAT", "TVA Lebanon", "MOF Lebanon". Lebanon imposes VAT at 11% under Law 379/2001 (12% Cabinet-approved Feb 2026, pending Parliament). WARNING -- ongoing economic crisis affects enforcement and exchange rates. ALWAYS read this skill before handling any Lebanon VAT work.

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